Lumber Prices on the Rise
This is our promise as partners in the Home Building & Remodeling Industry.
Above are headlines that scream of lumber volatility, and price increases abound. In fact, with a little research, you’ll find that lumber prices have just hit a historical high. Another quick look, and you’ll find articles about the trucking shortage and that diesel prices are at a 3-year high. We recently learned that freight and other shipping costs account for approximately 9% of all finished good retail costs. And then there’s labor shortage. While this is not new knowledge, we’re now feeling the competition for employees in all aspects of the business. There’s also been a significant steel price increase affecting nails, screws, rebar, mesh, straps, hangers, and eventually wiring. Even with all of that, there continues to be a high demand for housing. We seem to be right in the middle of the hot spot.
What this all means to East Coast Lumber is that we will work even harder to keep quality products in stock, to be sure orders are delivered on time and in full, and at the most competitive prices we can. As partners in the Home Building & Remodeling Industry, that’s what we can promise. That and doing our best to let you know what we know when we know it, so you can make the best decisions for yourselves and your customers.
Over recent months, we have done our best to plan ahead by investing heavily in lumber before prices increased. The idea is to hold off passing these increases onto our customers for as long as we can. We will implement the same strategy going forward, for just about anything, when given the opportunity and when it makes sense. We are still buying and receiving lumber on a regular basis, and price increases are inevitable.
Prices are still climbing and we, collectively at East Coast Lumber, don’t see that trend changing anytime soon. What we ask of you is to keep a close eye on your quotes. Be sure to get old quotes re-quoted before signing that final contract with your customer. When it comes to commodity building material pricing, please understand that timing is everything. If you have questions or concerns about pricing, just ask us. Please know that we have everyone's best interest in mind. As always, we wish you success and genuinely thank you for your business.
Sincerely,
Eric Murphy
Sales Manager
For additional information, and to read the articles featured in the main graphic, visit:
Hampstead, John Paul. “A Perfect Storm for Lumber Markets.” FreightWaves
, 2 Mar. 2018,
www.freightwaves.com/news/economics/perfectstormforlumbermarkets.
“News Release: More Record-Level Lumber Prices Expected in 2018 from U.S. Import Duties.” Wood Markets
, 15 Dec. 2017,
www.woodmarkets.com/news-release-record-level-lumber-prices-expected-2018-u-s-import-duties/.
Capital, Andri. “Daily Risk Report: Lumber And Inflation.” Seeking Alpha
, Seeking Alpha, 24 Apr. 2018,
www.seekingalpha.com/article/4165336-daily-risk-report-lumber-inflation.
“Rising Lumber Prices Hit Home.” NAHB Now | The News Blog of the National Association of Home Builders
, 13 Apr. 2018,
nahbnow.com/2018/04/rising-lumber-prices-hit-home/.
Webb, Craig. “Forecast: More Lumber 'Chaos,' Record Prices to Come in 2018.” Prosalesmagazine.com
, 21 Dec. 2017,
www.prosalesmagazine.com/products/lumber/forecast-more-lumber-chaos-record-prices-to-come-in-2018_o.
Black, Thomas. “U.S. Trucking Prices Are About to Rise Even More.” Bloomberg.com
, Bloomberg, 2 Apr. 2018,
www.bloomberg.com/news/articles/2018-04-02/trucking-prices-to-rise-still-more-as-u-s-driver-hours-sq....
Smith, Jennifer. “A Shortage of Trucks Is Forcing Companies to Cut Shipments or Pay Up.” The Wall Street Journal
, Dow Jones & Company, 25 Jan. 2018,
www.wsj.com/articles/a-shortage-of-trucks-is-forcing-companies-to-cut-shipments-or-pay-up-1516789800.
Perkowski, Mateusz. “Multiple Factors Cause Log Price Surge.” Capital Press
, 30 Jan. 2018,
www.capitalpress.com/Timber/20180130/multiple-factors-cause-log-price-surge.
Hawes, Clarissa. “Freight Rates Soar for Small-Business Truckers in Mid-January.” Trucks.com
, Trucks.com, 12 Feb. 2018,
www.trucks.com/2018/01/29/freight-rates-truckers-soar.
Paris, Ellen. “2018's Housing Market Looks Good Unless You're A First-Time Millennial Buyer.” Forbes
, Forbes Magazine, 29 Jan. 2018,
www.forbes.com/sites/ellenparis/2018/01/29/2018s-housing-market-looks-good-unless-youre-a-first-time....



The lumber market nationwide continues to experience unprecedented price spikes and supply shortages


